To
The Members of
Ruchira Papers Limited
Report on the Audit of the Financial Statements Opinion
We have audited the accompanying financial statements of Ruchira Papers Limited
(“The Company”), which comprise the Balance Sheet as at March 31, 2023, the
Statement of Profit and Loss (including other comprehensive income), the Statement of
Changes in Equities and the Statement of Cash Flows for the year then ended, and notes to
the financial statements, including a summary of the significant accounting policies and
other explanatory information (herein after referred to as “the financial
statements”).
In our opinion and to the best of our information and according to the explanations
given to us, the aforesaid Financial Statements give the information required by the
Companies Act, 2013, as amended (‘the Act”) in the manner so required and give a
true and fair view in conformity with the Indian Accounting Standards prescribed under
Section 133 of the Act, read with the Companies (Indian Accounting Standard) Rules, 2015
as amended (Ind AS) and other accounting principles generally accepted in India, of the
state of affairs of the Company as at March 31, 2023, its profit including other
comprehensive income, its cash flows and the changes in equity for the year ended on that
date.
Basis for Opinion
We conducted our audit of the Financial Statements in accordance with the Standards on
Auditing (SAs), as specified under section 143(10) of the Act. Our responsibilities under
those Standards are further described in the ‘Auditors Responsibilities for the
Audit of the Financial Statements section of our report. We are independent of the
Company in accordance with the ‘Code of Ethics issued by the Institute of Chartered
Accountants of India (ICAI) together with the ethical requirements that are relevant to
our audit of the financial statements under the provisions of the Act and the Rules made
thereunder, and we have fulfilled our other ethical responsibilities in accordance with
these requirements and the Code of Ethics. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our audit opinion on the
Financial Statements.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most
significance in our audit of the Financial Statements for the financial year ended March
31, 2023. We have determined that there are no key audit matters to communicate in our
report.
Information other than the Financial Statements and Auditors Report thereon
The Companys Board of Directors is responsible for the preparation of other
information. The other information comprises the information included in the Management
Discussion and Analysis, Boards Report including annexures, Corporate Governance and
Shareholders Information, but does not include the Financial Statements and our auditors
report thereon.
Our opinion on the Financial Statements does not cover the other information and we do
not express any form of assurance conclusion thereon.
In connection with our audit of the Financial Statements, our responsibility is to read
the other information and, in doing so, consider whether such other information is
materially inconsistent with the financial statements or our knowledge obtained in the
audit or otherwise appears to be materially misstated. If, based on the work we have
performed, we conclude that there is a material misstatement of this other information, we
are required to report that fact. We have nothing to report in this regard.
Managements Responsibility for the Financial Statements
The Companys Board of Directors is responsible for the matters stated in Section
134(5) of the Companies Act, 2013 (“the Act”) with respect to the preparation of
these financial statements that give a true and fair view of the financial position,
financial performance, total comprehensive income, changes in equity and cash flows of the
Company in accordance with the Indian Accounting Standards (Ind AS) and other generally
accepted accounting principles in India including the Accounting Standards specified under
Section 133 of the Act.
This responsibility also includes maintenance of adequate accounting records in
accordance with the provisions of the Act for safeguarding the assets of the Company and
for preventing and detecting frauds and other irregularities; selection and application of
appropriate accounting policies; making judgments and estimates that are reasonable and
prudent; and the design, implementation and maintenance of adequate internal financial
controls, that were operating effectively for ensuring the accuracy and completeness of
the accounting records, relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material misstatement, whether
due to fraud or error.
Inpreparingthefinancialstatements,management is responsible for assessing the Companys
ability to continue as a going concern, disclosing, as applicable, matters relating to
going concern and using the going concern basis of accounting unless management either
intents to liquidate the Company or to cease operations, or has no realistic alternative
but to do so.
The Board of Directors is also responsible for overseeing the Companys financial
reporting process.
Auditors Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the Financial
Statements as a whole are free from material misstatement, whether due to fraud or error,
and to issue an auditors report that includes our opinion. Reasonable assurance is a high
level of assurance, but is not a guarantee that an audit conducted in accordance with SAs
will always detect a material misstatement when it exists. Misstatements can arise from
fraud or error and are considered material if, individually or in the aggregate, they
could reasonably be expected to influence the economic decisions of users taken on the
basis of these Financial Statements.
As part of an audit in accordance with SAs, we exercise professional judgment and
maintain professional skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the Financial
Statements, whether due to fraud or error, design and perform audit procedures responsive
to those risks, and obtain audit evidence that is sufficient and appropriate to provide a
basis for our opinion. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to
design audit procedures that are appropriate in the circumstances. Under section 143(3)(i)
of the Act, we are also responsible for expressing our opinion on whether the Company has
adequate internal financial controls system in place and the operating effectiveness of
such controls.
• Evaluate the appropriateness of accounting policies used and the reasonableness
of accounting estimates and related disclosures made by management.
• Conclude on the appropriateness of managements use of the going concern basis
of accounting and, based on the audit evidence obtained, whether a material uncertainty
exists related to events or conditions that may cast significant doubt on the Companys
ability to continue as a going concern. If we conclude that a material uncertainty exists,
we are required to draw attention in our auditors report to the related disclosures in
the financial statements or, if such disclosures are inadequate, to modify our opinion.
Our conclusions are based on the audit evidence obtained up to the date of our auditors
report. Rs owever, future events or conditions may cause the Company to cease to continue
as a going concern.
• Evaluate the overall presentation, structure and content of the Financial
Statements, including the disclosures, and whether the Financial Statements represent the
underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit and significant audit findings, including any
significant deficiencies in internal control that we identify during our audit.
Wealsoprovidethosechargedwithgovernancewith a statement that we have complied with
relevant ethical requirements regarding independence, and to communicate with them all
relationships and other matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors Report) Order, 2020,(the order) issued by
the Central Government in terms of sub-section (11) of section 143 of the Act, we give in
the “Annexure A” a statement on the matters specified in paragraphs 3 and 4 of
the Order, to the extent applicable.
2. As required by Section 143 (3) of the Act, based on our audit, we report that: (a)
We have sought and obtained all the information and explanations which to the best of our
knowledge and belief were necessary for the purposes of our audit.
(b) In our opinion, proper books of accounts as required by law have been kept by the
Company so far as it appears from our examination of those books.
(c) The Balance Sheet, the Statement of Profit and Loss including other comprehensive
income, the Statement of Changes in Equity and the Statement of Cash Flows dealt with by
this Report are in agreement with the books of accounts.
(d) In our opinion, the aforesaid financial statements comply with the Indian
Accounting Standards prescribed under Section 133 of the Act read with the Companies
(Indian Accounting Standards) Rules, 2015, as amended.
(e) On the basis of the written representations received from the directors as on March
31, 2023 taken on record by the Board of Directors, none of the directors are disqualified
as on March 31, 2023 from being appointed as a director in terms of Section 164 (2) of the
Act.
(f) With respect to the adequacy of the internal financial controls with reference to
financial statements of the Company and the operating effectiveness of such controls,
refer to our separate Report in “Annexure B”.
Our report expresses an unmodified opinion on the adequacy and operating effectiveness
of the internal financial control over financial reporting of those companies, for reasons
stated therein.
(g) In our opinion, the managerial remuneration for the year ended March 31, 2023 has
been paid/provided by the company to its directors in accordance with the provisions of
section 197 read with Schedule V of the Act.
(h) With respect of the other matters to be included in the Auditors Report in
accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, as amended, in
our opinion and to the best of our knowledge and belief and according to the information
and explanations given to us:
(i) The Company did not have any pending litigation, which may have impact on its
financial position in its financial statements. (ii) The Company did not have any long
term contracts including derivative contracts for which there were any material
foreseeable losses.
(iii) There has been no delay in transferring amounts, required to be transferred, to
the Investor Education and Protection Fund by the Company.
(iv) (a) The management has represented that, to the best of its knowledge and belief,
no funds have been advanced or loaned or invested (either from borrowed funds or share
premium or any other sources or kind of funds) by the company to or in any other person(s)
or entity(ies), including foreign entities (“Intermediaries”), with the
understanding, whether recorded in writing or otherwise, that the Intermediary shall,
whether, directly or indirectly lend or invest in other persons or entities identified in
any manner whatsoever by or on behalf of the company (“Ultimate Beneficiaries”)
or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;
(b) The management has represented, that, to the best of its knowledge and belief, no
funds have been received by the company from any person(s) or entity(ies), including
foreign entities (“Funding Parties”), with the understanding, whether recorded
in writing or otherwise, that the company shall, whether, directly or indirectly, lend or
invest in other persons or entities identified in any manner whatsoever by or on behalf of
the Funding Party (“Ultimate Beneficiaries”) or provide any guarantee, security
or the like on behalf of the Ultimate Beneficiaries; and
(c) Based on such audit procedures that were considered reasonable and appropriate in
the circumstances, nothing has come to our notice that has caused us to believe that the
representationsundersub-clause(a)and (b) contain any material misstatement.
(v) The dividend paid during the year by the company is in compliance with section 123
of the act to the extent it applies to declaration of dividend. Further, the Board of
Directors of the company have proposed final dividend of Rs 5/- per share for the year
ended 31.03.2023, which is subject to the approval of the shareholders at the Annual
General Meeting. The amount of divided declared is in accordance with section 123 of the
act to the extent it applies to declaration of dividend.
(vi) Proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 for maintaining books
of account using accounting software which has a feature of recording audit trail (edit
log) facility is applicable with effect from April 1, 2023 to the Company and its
subsidiaries if any, which are companies incorporated in India, and accordingly, reporting
under Rule 11(g) of Companies (Audit and Auditors) Rules, 2014 is not applicable for the
financial year ended March 31, 2023.
| For Subhash Sajal & Associates |
|
|
Chartered Accountants |
|
Registration No.018178N |
|
Subhash Mittal (FCA) |
|
Partner |
| Date: 29th May 2023 |
Membership No.089077 |
| Place: Kala Amb |
UDIN: 23089077BGWNUX9441 |
Annexure A to Independent Auditors Report
Referred to in our Independent Auditors Report of odd date to the members of Ruchira
Papers Limited on the financial statements as of and for the year ended March 31, 2023, we
report the following:
i (a) The company has maintained proper records showing full particulars, including
quantitative details and situation, of Property Plant and Equipment.
(b) The Property Plant and Equipment were physically verified by the Management during
the year in accordance with a regular verification programme which, in our opinion
provides for physical verification of all the Property Plant and Equipment at reasonable
interval. According to information and explanations given to us, no material discrepancies
have been noticed on such verification.
(c) In our opinion and according to information and explanations given to us and based
on an examination of the records of the Company, the title deeds of immovable properties
included in Property Plant and Equipment are held in the name of the Company.
(d) The Company has not revalued its Property, Plant and Equipment, Right of Use assets
or intangible assets during the year.
(e) No proceedings have been initiated or are pending against the Company for holding
any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and
rules made thereunder. Accordingly, reporting under clause 3(i) (e) of the Order is not
applicable to the Company. ii. (a) The management has conducted physical verification of
inventory at reasonable intervals during the year. In our opinion, the coverage and
procedure of such verification by the management is appropriate and no discrepancies of
10% or more in the aggregate for each class of inventory were noticed.
(b) The Company has a working capital limit in excess of Rs 5 crore sanctioned by
bank(s)
based on the security of current assets. The quarterly returns/statements, in respect
of the working capital limits have been filed by the Company with such banks and such
returns/statements are materially in agreement with the books of account of the Company
for the respective periods, which were not subject to audit.
iii The Company has not made any investment in, provided any guarantee or security or
granted any loans or advances in the nature of loans, secured or unsecured to companies,
firms, Limited Liability Partnerships (LLPs). Accordingly, provisions of clause 3(iii)
said order the company are not applicable to the Company.
iv. No transactions relating to Loans, Investment, Guarantees and Security has been
made during the year under the provisions of Section 185 and 186 of the Companies Act,
2013. Accordingly, the provisions of clause 3 (iv) of the said Order are not applicable to
the Company.
v. In our opinion and according to information and explanations given to us the company
has not accepted any deposit from the public within the meaning of Sections 73 to 76 of
the Act or any other relevant provisions of the Act and the Rules framed thereunder.
Accordingly, paragraph 3(v) of the Order is not applicable to the Company.
vi. Pursuant to the rules by the Central Government of India, the Company is required
to maintain cost records as specified under Section 148 (1) of the Act in respect of its
products. We have broadly reviewed the same, and are of the Opinion that, prima facie, the
prescribed accounts and records have been made and maintained. We have not, however made a
detailed examination of the same.
vii. (a) According to the information and explanations given to us and the records of
theCompanyexaminedbyus,inouropinion, amounts deducted/accrued in the books of account in
respect of the undisputed statutory dues, including Provident Fund, Employees State
Insurance, Income Taxes, Goods and Service Tax, Duty of Customs and other material
statutory dues, as applicable, have been regularly deposited during the year by the
Company with the appropriate authorities.
(b) According to the information and explanations given to us, no undisputed amounts
payable in respect of Provident Fund, Employees State Insurance, Income Taxes, Goods and
Service Tax, Duty of Customs and other material statutory dues, were in arrears as at 31st
March 2023 for a period of more than 6 months from the date they became payable.
viii. According to the information and explanations given to us, no transactions were
surrendered or disclosed as income during the year in the tax assessments under the Income
Tax Act, 1961 (43 of 1961) which have not been recorded in the books of accounts.
ix. a) According to the information and explanations given to us, the Company has not
defaulted in repayment of its loans or borrowings or in the payment of interest thereon to
any lender.
(b) According to the information and explanations given to us including confirmations
received from banks and representation received from the management of the Company, and on
the basis of our audit procedures, we report that the Company has not been declared a
willful defaulter by any bank or financial institution or other lender.
(c) In our opinion and according to the information and explanations given to us, money
raised by way of term loans were applied for the purposes for which these were obtained.
(d) In our opinion and according to the information and explanations given to us, and
on an overall examination of the financial statements of the Company, funds raised by the
Company on short term basis/ working capital limits have prima facie not been utilized for
long term purposes.
e) According to the information and explanations given to us and on an overall
examination of the financial statements of the Company, the Company has no
subsidiary/joint venture/associate company accordingly clause 3(ix) (e) is not applicable
to Company.
(f) According to the information and explanations given to us, the Company has no
subsidiary/joint venture/associate company accordingly clause 3(ix) (e) is not applicable
to Company.
x (a) The Company has not raised any money by way of IPO/FPO (including debt
instruments) except term loans. The term loans raised during the year were utilized for
the purpose for which those were raised.
(b) During the year, the company made the conversion of share warrants into equity
shares within the stipulated timeline. These share warrants were preferentially allotted
in the previous year, the conversion process has been completed in accordance with the
applicable regulations and timelines. In our opinion and according to the information and
explanations given to us, the Company has complied with the requirements of section 42 and
section 62 of the Act and other applicable provisions and the rules framed thereunder with
respect to the same. Further, the amounts raised were used for the purposes for which the
funds were raised. During the year, the Company had not made preferential
allotment/private placement of fully/partly or optionally convertible debentures.
xi (a) To the best of our knowledge and according to the information and explanations
given to us, no fraud by the Company or on the Company has been noticed or reported during
the period covered by our audit (b) Since no fraud by the company or on the company has
been noticed or reported during the period covered by our audit. Therefore, no report
under section 143(12) of the Act has been filed with the Central Government for the
period.
(c) According to the information and explanations given to us including the
representation made to us by the management of the Company, there are no whistle-blower
complaints received by the Company during the year.
xii. As the Company is not a Nidhi Company and the Nidhi Rules, 2014 are not applicable
to it, the provisions of Clause 3(xii) of the order are not applicable to the Company.
xiii. In our opinion and according to information and explanations given to us, the
Company has entered into transactions with related parties in compliance with the
provisions of Sections 177 and 188 of the Act, wherever applicable. The details of such
related party transactions have been disclosed in the financial statements as required by
the applicable accounting standards.
xiv (a) In our opinion and according to the information and explanations given to us,
the Company has an internal audit system as required under section 138 of the Act which
commensurate with the size and nature of its business.
(b) We have considered the Internal audit reports for the year under audit issued to
the company during the year and till date, in determining the nature, timing and extent of
our audit procedures. xv. In our opinion and according to information and explanations
given to us, the Company has not entered into any non-cash transactions with its directors
or persons connected with him. Accordingly, the provisions of Clause 3(xv) of the order
are not applicable to the Company. xvi. The Company is not required to be registered under
Section 45-IA of the Reserve Bank of India Act, 1934. Accordingly, the provisions of
Clause 3 (xvi) of the order are not applicable to the Company.
xvii The Company has not incurred any cash loss in the current as well as the
immediately preceding financial year.
xviii There has been no resignation of the statutory auditors during the year.
xix According to the information and explanations given to us and on the basis of the
financial ratios, ageing and expected dates of realization of financial assets and payment
of financial liabilities, other information accompanying the standalone financial
statements, our knowledge of the plans of the Board of Directors and management and based
on our examination of the evidence supporting the assumptions, nothing has come to our
attention, which causes us to believe that any material uncertainty exists as on the date
of the audit report. The Company is capable of meeting its liabilities existing at the
date of balance sheet as and when they fall due within a period of one year from the
balance sheet date. We, however, state that this is not an assurance as to the future
viability of the company. We further state that our reporting is based on the facts up to
the date of the audit report and we neither give any guarantee nor any assurance that all
liabilities falling due within a period of one year from the balance sheet date, will get
discharged by the company as and when they fall due.
xx According to the information and explanations given to us, the Company does not have
any unspent amount in respect of any ongoing or other than ongoing project as at the
expiry of the financial year. Accordingly, reporting under clause 3(xx) of the Order is
not applicable to the Company.
xxi The reporting under clause 3(xxi) of the Order is not applicable in respect of
audit of standalone financial statements of the Company. Accordingly, no comment has been
included in respect of said clause under this report.
| For Subhash Sajal & Associates |
|
|
Chartered Accountants |
|
Registration No.018178N |
|
Subhash Mittal (FCA) |
|
Partner |
| Date: 29th May 2023 |
Membership No.089077 |
| Place: Kala Amb |
UDIN: 23089077BGWNUX9441 |
Annexure B to Independent Auditors Report
Referred to in paragraph 2(f) of the Independent Auditors Report of even date to the
members of Ruchira Papers Limited on the financial statements for the year ended March 31,
2023, we report the following:
Report on the Internal Financial Controls Over Financial Reporting under Clause (i) of
Sub-section 3 of Section 143 of the Act
We have audited the internal financial controls over financial reporting of Ruchira
Paper Limited (“the Company”) as at March 31, 2023 in conjunction with our audit
of the financial statements of the Company for the year ended on that date.
Managements Responsibility for Internal Financial Controls
The Companys management is responsible for establishing and maintaining internal
financial controls based on the internal control over financial reporting criteria
established by the Company considering the essential components of internal control stated
in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting
issued by the Institute of Chartered Accountants of India (ICAI). These responsibilities
include the design, implementation and maintenance of adequate internal financial controls
that were operating effectively for ensuring the orderly and efficient conduct of its
business, including adherence to respective companys policies, the safeguarding of its
assets, the prevention and detection of frauds and errors, the accuracy and completeness
of the accounting records, and the timely preparation of reliable financial information,
as required under the Act.
Auditors Responsibility
Our responsibility is to express an opinion on the Companys internal financial
controls over financial reporting based on our audit. We conducted our audit in accordance
with the Guidance Note on Audit of Internal Controls Over Financial Reporting (“the
Guidance Note”) and the Standards on Auditing, issued by ICAI deemed to be prescribed
under section 143 (10) of the Act, to the extent applicable to an audit of internal
financial controls, both applicable to an audit of internal financial controls and, both
issued by the ICAI. Those standards and the Guidance Note require that we comply with
ethical requirements and plan and perform the audit to obtain reasonable assurance about
whether adequate internal financial control over financial reporting was established and
maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of
the internal financial controls system over financial reporting and their operating
effectiveness. Our audit of internal financial controls over financial reporting included
obtaining an understanding of internal financial controls over financial reporting,
assessing the risk that a material weakness exists, and testing and evaluating the design
and operating effectiveness of internal control based on the assessed risk. The procedures
selected depend on the auditors judgment, including the assessment of the risks of
material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion on the Companys internal financial controls over
financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A Companys internal financial control over financial reporting is a process designed
to provide reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statements for external purposes in accordance with generally
accepted accounting principles. A companys internal financial control over financial
reporting includes those policies and procedures that (i) pertain to the maintenance of
records that, in reasonable detail, accurately and fairly reflect the transactions and
dispositions of the assets of the company; (ii) provide reasonable assurance that
transactions are recorded as necessary to permit preparation of financial statements in
accordance with generally accepted accounting principles, and that receipts and
expenditures of the company are being made only in accordance with authorizations of
management and directors of the company; and (iii) Provide reasonable assurance regarding
prevention or timely detection of unauthorized acquisition, use or disposition of the
companys assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financial
reporting, including thepossibilityofcollusionorimpropermanagement override of controls,
material misstatements due to error or fraud may occur and not be detected. Also,
Projections of any evaluation of the internal financial controls over financial reporting
to future periods are subject to the risk that the internal financial control over
financial reporting may become inadequate because of changes in conditions, or that the
degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, to the best of our information and according to the explanations given
to us, the company has, in all material respects, an adequate internal financial controls
system over financial reporting and such internal financial controls over financial
reporting were operating effectively as at March 31, 2023, based on the internal controls
over financial reporting criteria established by the Company considering the essential
components over internal control stated in the Guidance Note on audit of Internal
Financial Controls Over Financial Reporting issued by the Institute of Chartered
Accountants of India.
| For Subhash Sajal & Associates |
|
|
Chartered Accountants |
|
Registration No.018178N |
|
Subhash Mittal (FCA) |
|
Partner |
| Date: 29th May 2023 |
Membership No.089077 |
| Place: Kala Amb |
UDIN: 23089077BGWNUX9441 |
+91-9892691696
